Warren Buffett: “Stocks Are Going Higher”
Warren Buffett will not let a little bit of volatility scare him out of the stock market.
“Stocks are going to be higher,” Buffett told CNBC’s Becky Quick on Monday.
Buffett reiterated that he was a long-term investor, saying he expected prices to be “a lot higher” 10 years or 20 years from now.
He likened owning stocks to owning a home, saying that if homeowners expected prices to fall 5%, they wouldn’t sell their homes in hopes to buy it back for 5% less. They are locked in for the long haul.
Most investors let a little bit of volatility scare them out of the market. Most investors are fearful of the ups & downs of the market. Most investors fret over daily news events. Most investors don’t know where returns come from. Most investors don’t know how to invest.
There are 3 golden rules to investing:
- 1) No Stock-Picking
- 2) No Market-timing
- 3) Ignoring Past Performance
I’ll add a 4th golden rule- Don’t invest in retail mutual funds provided by brokerage firms. They are high-cost, commission-based, and probably underperform the benchmark. All this just cost you more money.
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